E-commerce is a fast-growing industry that allows businesses to sell their products and services online. Its growth is driven by advances in technology that make shopping more convenient for consumers.
In addition, new business models are making it easier for companies to expand their reach on a global scale. This infographic sponsored by Logiq explores five emerging trends in eCommerce.
Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning are rapidly transforming eCommerce. These advanced technologies offer multiple benefits for businesses and customers alike.
One of the biggest benefits is personalization. AI algorithms can analyze customer data and shopping behavior to recommend personalized products or services. These recommendations are more likely to convert to sales and improve customer satisfaction.
Another benefit is predictive analytics. AI can help with the complex task of inventory management by tracking product demand and forecasting supply. This helps companies stay competitive and minimize customer churn.
Chatbots are another great use of AI. These virtual assistants can answer customer questions in real-time and provide 24/7 support, boosting customer satisfaction and brand loyalty. They can even provide customized pricing based on user data, sales trends, competitors’ offers, and demand vs. supply. This technology also automates processes and enhances user experience by reducing response times.
Robots and Drones
A robot is an autonomous machine with high-quality carrier boards and embedded software that enables it to function in a variety of applications. Whether designed for fulfillment, retail, security, or data collection, robots are a valuable asset in many areas of the e-commerce industry.
Retailers are leveraging automation and artificial intelligence to enhance the customer experience while saving on labor costs. Examples include Kroger Edge, an automated digital shelf that displays prices, nutritional facts, coupons, and video advertisements.
Many retailers are also automating the fulfillment process. For example, Ahold Delhaize partnered with Takeoff Technologies to create automated miniwarehouses that facilitate in-store fulfillment of online orders. Additionally, some retailers are redeploying labor into more meaningful activities like home health care and technology support.
Personalization is key to gaining customer loyalty. Customers are more likely to spend money, remain loyal to a brand, and recommend it to their friends when they feel that the company understands them and their needs.
This can be achieved through personalized product recommendations, targeted messaging, and omnichannel experiences that respond to each customer across all channels. Personalization is a must-have for any ecommerce business that wants to grow and succeed in 2023 and beyond.
Almost any type of product or service can be sold using the subscription model. Many popular examples are business-to-consumer (B2C) services such as curated box delivery services like UnboxBoardom or online dress rental, but the subscription model is also used by B2B businesses such as website development and maintenance, SEO services or access to stock images.
During the COVID-19 crisis, the e-commerce platform has enabled a wide range of firms to sell their products and services online in addition to traditional retail outlets. In some cases, e-commerce has been an essential alternative or complementary sales channel for firms that have had to shut down physical stores during the crisis, allowing them to continue operating in spite of contact restrictions and confinement measures.
In the future, we will see more companies offering a variety of subscription products and services. Subscription models create a predictable future revenue stream and are an attractive option for consumers who value personalization and convenience.